CHAPTER 3C:

MARKET OPPORTUNITY
ANALYSIS:
MARKET SEGMENTATION
MARKETING MANAGEMENT
PROCESS
MARKET
OPPURTUNITIE
SEGMENTATIO
S
N

MARKET MIX POSITIONING

 OPPURTUNITY-SEEKING
3 MAJOR WAYS TO SEEK
OPPORTUNITIES
MARKET PRODUCT MARKET
PENETRATION DEVELOPMENT DEVELOPMENT
 MARKET SEGMENTATION
• Marketing strategy is sometimes known as “CORE
STRATEGY”.
• CORE STRATEGY- refers to the 3-step process of market
segmentation targeting and positioning, STP, in order for the
tactics to be more effectively formulated.
• It enables a company to develop a positioning and marketing mix
strategy that can satisfy a smaller, more focused range of
customer’s needs and wants with the identified opportunity.
 CORE STRATEGY
• Market Segmentation
• Target Market
• Product Positioning
BASIS FOR MARKET SEGMENTATION
FOR CONSUMER PRODUCTS

1. By needs and wants (or benefits)

2. By socio-demographics
3. By consumer behavior
4. By psychographics
1.Needs and Wants Segmentation
A major way to segment a market is by identifying consumer needs and
wants. There is another way to do segmentation, and this is via emotion needs.
• Expressive (how one looks)
• Gratification (how one feels)
• Combination (how one looks and feels)

2.Socio-demographic Segmentation
Demographic segmentation deals with questions such as “Who are you?”
and “How much do you earn?”, s commonly used when planning and allocating
candidates strategy.
 VARIABLES OF DEMOGRAPHIC
SEGMENTATION

oAge ○ Family Size ○ Education

oGender ○ Religion ○ Profession
oCivil Status ○ Nationality ○ Location
oIncome ○ Climate ○ Geographic
 3. Behavioral Segmentation Another
method of market segmentation is by consumer behavior. Understanding
customer behavior has its obvious applications.
For instance:
• Customers who tend to be loyal to a brand will most likely not respond
to a competitor’s price cut, at least, not immediately.
VARIABLES OF BEHAVIORAL
SEGMENTATION
◙Purchase frequency
◙User status
◙Usage rate
◙Loyalty status
◙Readiness
4.Psychographics Segmentation

Relates to social issues, personal interest and

specific product attributes.
 VARIABLES OF PSYCHOGRAPHICS
SEGMENTATION
• Social Issues

• Personal Interest
 Segment Percent of Description
Psychographics Market
Segmentation of Stressed & 12% This group is very busy, and their fast-paced lives take a toll on their eating
the snack foods Stretched habits.
and beverages
market in the Whirling 12% This group leads stressful lives and struggle to reach their ideal weight.
Philippines, Weight
arrange from most Watchers
stressed to most Control 15% Facing stress in their lives and without much passion for food, this group
balanced pace of Lackers often prioritizes convenience in their food choices.
life.
Health 14% Conscious of health and making an effort to lose weight, this group is trying
Conscious to take control of their own diet and that of their family members-but with
Struggles food as an important part of their social lives, they too often give in to
cravings.

Spartan 16% Taste trumps health for these consumers, but food is ultimately more about
Worriers function than enjoyment for them.
Social 13% Prioritizing taste over health, these consumers are true foodies, treating
Foodies themselves to the best whenever they have money.
Family 16% With health as the top priority, this group plans their choices carefully but still
Pleasers faces a challenge to get their family to eat right.
 Price Segmentation

• Marketers can always do benefit segmentation by

price . Except for a few categories such as those
provided by the government or the company, there
will always be buyers who are quite price sensitive
and buyers who are just the opposite, such as those
wanting superior product or service, especially in an
economic boom.
 Variables Example of BTB
Segmentation Variables
Demographic Industry
 Industrial or Company size
Business-to- Geography
Operating Variables User/Non-User Status
Business
Costumer requirements
Segmentation Technology
Purchasing Approach Purchasing Policies
Organization
Decision criteria
Situation factors Urgency
Specific application or end-use
Order size
Personal characteristics Compatibility
Attitude towards risk
Loyalty
 MARKET MEASUREMENT
A market is composed of people or organization that have the
needs, have the ability and willingness to pay for their purchases,
and have the authority to decide.
The general criteria for market attractiveness are:
1.MARKET SIZE
2.MARKET GROWTH
 MARKET SIZE
 Is dependent on the number qualified customers
and the frequency of purchase.
CRITERIA FOR VALID MARKET

» Need
» Pay
» Authority and Availability
 TARGET MARKET

∆Is a fairly homogenous group of people or

organizations to which a company wishes to appeal.
TARGET MARKET PLANNING

Target market planning or T-Planning enables the

marketing and product development group to focus on
a target for both product and communication effort
CRITERIA TO CHOOSE MARKET SEGMENT
Measures for Market Attractiveness:
 Market Size
 Market Growth
 Homogeneity
 Ease of Creating Awareness
 Purchase Authority
 Loyalty Level
 Responsive of customers
Selecting the Target Market
Defining the Target Market
Describing your Target Market
THANK YOU
FOR
LISTENING!